SE
C
G
Business Studies
ns
GCSE - Topic 3 &
io
Glossary
pt
(Business
rO
Operations)
te
as
M
1
, Production ● Production is the process of turning raw materials
into goods and services that can be sold.
Production Processes:
● Inputs → Transformation → Outputs
● Two types of production:
○ Job production - uses people to make
goods and services
○ Flow Production - used machinery to
SE
make goods and services
Job production
Pros: Cons
C
● Products are ● Unit costs are
usually high higher than
quality using flow
● Products are production
made to the ● Labour-intensive
G
specific processes,
requirements of therefore this
the customer method is less
● Higher prices suited to the use
ns ●
can be charged
Greater job
satisfaction for
workers, as they
are usually
involved in all
stages of the
●
of machinery
Requires skilled
employees, who
may demand
higher wages
and/or on going
training
io
production
process
● A business may
find it easier to
differentiate itself
pt
from rivals
rO
Flow production
Pros: Cons
● Businesses can ● Production can
produce on a be inflexible, due
larger scale to the use of
te
● Uses less labour machinery
than job ● Jobs are
production repetitive for
● Workers can staff and can
specialise and lower motivation
as
become more ● Initial purchase
efficient and set up costs
● Production lines can be high
can operate 24/7 ● Breakdowns can
if necessary result in
● Consistent, downtime/ineffici
M
standard quality encies
● Lower unit costs ● Lower skilled
than job workers required
production compared to job
production; may
result in higher
labour turnover
● Products may be
too similar to
rivals
2
C
G
Business Studies
ns
GCSE - Topic 3 &
io
Glossary
pt
(Business
rO
Operations)
te
as
M
1
, Production ● Production is the process of turning raw materials
into goods and services that can be sold.
Production Processes:
● Inputs → Transformation → Outputs
● Two types of production:
○ Job production - uses people to make
goods and services
○ Flow Production - used machinery to
SE
make goods and services
Job production
Pros: Cons
C
● Products are ● Unit costs are
usually high higher than
quality using flow
● Products are production
made to the ● Labour-intensive
G
specific processes,
requirements of therefore this
the customer method is less
● Higher prices suited to the use
ns ●
can be charged
Greater job
satisfaction for
workers, as they
are usually
involved in all
stages of the
●
of machinery
Requires skilled
employees, who
may demand
higher wages
and/or on going
training
io
production
process
● A business may
find it easier to
differentiate itself
pt
from rivals
rO
Flow production
Pros: Cons
● Businesses can ● Production can
produce on a be inflexible, due
larger scale to the use of
te
● Uses less labour machinery
than job ● Jobs are
production repetitive for
● Workers can staff and can
specialise and lower motivation
as
become more ● Initial purchase
efficient and set up costs
● Production lines can be high
can operate 24/7 ● Breakdowns can
if necessary result in
● Consistent, downtime/ineffici
M
standard quality encies
● Lower unit costs ● Lower skilled
than job workers required
production compared to job
production; may
result in higher
labour turnover
● Products may be
too similar to
rivals
2
